Road Show Presentation - IGD SiiQ
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Road Show Presentation
June 2021
Disclaimer
This presentation does not constitute an offer or an These statements include financial projections and
invitation t o subscribe for or purchase any securities. estimates and their underlying assumptions, statements
regarding plans, objectives and expectations with
The securities referred t o herein have not been registered respect t o future operations, products and services, and
and will not be registered in the United States under the statements regarding plans, performance.
U.S. Securities A c t of 1933, as amended (the “Securities
Act”), or in Australia, Canada or Japan or any other Although the management of IGD SIIQ SPA believes
jurisdiction where such an offer or solicitation would that the expectations reflected in such forward-looking
require the approval of local authorities or otherwise be statements are reasonable, investors and holders of IGD
unlawful. The securities may not be offered or sold in SIIQ are cautioned that forward-looking information
the United States or t o U.S. persons unless such and statements are subject t o various risk and
securities are registered under the Securities Act, or an uncertainties, many of which are difficult t o predict
exemption from the registration requirements of the and generally beyond the control of IGD SIIQ; that
Securities A ct is available. Copies of this presentation are could cause actual results and developments t o differ
not being made and may not be distributed or sent into materially from those expressed in, or implied or
the United States, Canada, Australia or Japan. projected by, the forward-looking statements.
This presentation contains forwards-looking information These risks and uncertainties include, bu t are not limited
and statements about IGD SIIQ SPA and its Group. to, those contained in this presentation.
Forward-looking statements are statements that are Except as required by applicable law, IGD SIIQ does not
not historical facts. undertake any obligation t o update any forward-
looking information or statements.
Index
1 Introduction to
IGD
Pag. 4
5
FY2020 and 1Q2021
Financial results Pag. 42
2 Operating
performances
in 2020 Pag. 11 6
Dividend and
Outlook
Pag. 50
3 Portfolio and
projects
Pag. 26 7
Appendix
Pag. 53
4 Sustainability
Pag. 38
3
1 Introduction to IGD
IGD at a glance
IGD is one of the main players in the Italian retail real estate sector: we develop and manage shopping centres across
the country. We are also present in the retail sector in Romania
25 hyper/ 14 shopping
27 shopping Development
malls in Italy
supermarkets c. €2.3bn malls in
& other(1)
in Italy Romania
65% of value portfolio value 4% of value
25% of value 6% of value
Of which full ownership of 16 shopping
centres (mall + hypermarket)
5.3% EPRA NIY (2) #1 EPRA NAV/NRV:
5.4% net initial yield topped-up Italian €10.38/share
SIIQ
(REIT)
62.0% EBITDA margin(3) FFO: €13.8mn
As at 31/03/2021 As at 31/03/2021
93.6% financial 49.9% LTV
%
% occupancy Italy (excl IFRS16 c.47.8%)
As at 31/03/2021 Sustainability Financial
Report Report
(6th year) (3rd year)
Data as at 31/12/2020 unless differently indicated
(1) Includes mainly the Porta a Mare project in Livorno
5
(2) IGD’s portfolio average
(3) Margin from freehold properties
IGD Business Model
A distinctive competitive positioning in the fragmented
Italian retail real estate market
1 Well-diversified
presence across Italy
39,2k PIL pro capite
2 Strategic positioning
3 Strong food anchor
4 Strong track record of
direct management
€34,6k–€42,6k
1 30,9k
35,2k €30,0k– €34,5k
38,0k
5 33,1k €20,6k– €29,9k Services
3
2 €16,8k– €20,5k
30,3k 1
22 35,3k €28.500
31,6k Media italiana Personal and
30,4k Ravenna
7
26,8k
€29.200 healthcare care
6 24,5k Media europea
# 6 2
n° di proprietà 5 24,7k
19,8k
4 km Local and
32,7k
2
18,4k international
Ipermercato
20,6k
18,2k 21,1k Centro Commerciale brands
ESP
17,2k
17,5k
Sharing economy
4
The Food Hypermarket Plays a Critical Proactive Approach, Carefully Selected
Presence across all Italy, mainly in hte We strive to be the Dominant Retail
Attraction Role in Our Retail Assets Fresh Merchandising Mix, Marketing Activity
Northern regions. With Strategic Focus Destination in Mid-Sized Wealthy Italian Adapted to Each Context and Wide Offer of
Cities, at Easy Reach from City Centre food, Daily Shopping, Sticky Consumer Habits
on High GDP per capita Mid-Size Cities Customer Related Services
2 Average Gla: about 25,000 sqm
M Easily reachable: about 4 k m from city center
Modern portfolio Catchment area: about 370,000 N. Of average parking places: 2,013
Average age 10 years inhabitants within 2 0 minutes Centers reached by public transport: 24 (89%)
(from opening/restyling
Average footfalls per center/year: 3.3
million* Centers reached by cycle path: 16 (59%)
* Data at 31 December 2019
6
Group Structure (simplified)
80.4% Revenues
Parent Company 95% Financial debt
86% Portfolio value
13,7% Revenues
100% 5% Financial debt
Italian Facility Management
6% Portfolio value
5,4% Revenues
100% No Financial debt
Romania
6% Portfolio value
100%
0,5% Revenues
Development project in No Financial debt
Livorno
1% Portfolio value
Data as at 31/12/2020
7
IGD’s shareholding structure
No. of shares Share capital Net equity
110,341,903 € 650 Mn € 1.1 Bn
Average 2020 market
Listed on STAR Segment of capitalization: c. €424 Mn Average 2020 daily trading:
Italian Stock Exchange Last mkt capitalization approx.261,262 shares
(28 May ’21) c. €444 mn
Majority of institutional investors, of which ⁽1⁾
EUROPA PLUS (GWM)
4.50%
Italy
Unicoop Tirreno
30% Mediolanum, Banca d’Italia
9.86%
UK & Ireland
1% Legal & General Group,
Interactive Brokers
US & Canada
Free float
42% Vanguard, Blackrock
44.72%
Luxembourg, Belgium, Netherlands
Coop Alleanza 3.0
2% Banque et Caisse d’Epairgne,
Banque Degroof
40.92%
France
5% Societe Generale, BNP Paribas
Rest of the world
20% Codan Forsikring, Japan TRSV
1. Internal processing by IGD 8
All figures as at 31 December 2020 unless otherwise determined
IGD Governance – Directors and Committees
IGD’s governance has been in line with the criteria of the Self Regulatory Code of Italian Stock Exchange since it was
listed. An internal Corporate Governance Code has been in use since 2008.
CEO
EXECUTIVE Claudio Albertini
CHAIRMAN Timothy Guy
Rossella Saoncella Antonio Rizzi Silvia Benzi Michele Santini
NON EXECUTIVE
INDEPENDENT
Rossella Schiavini Rosa Cipriotti Géry Robert-Ambroix
NON EXECUTIVE VICE CHAIRMAN
Stefano Dall’Ara Alessia Savino Edy Gambetti
NON INDEPENDENT
COMMITTEES:
54.5% Male (6)
Nominations and compensation Committee
45.5% Female (5)
Control and Risks Committee
Committee for Related Parties Transactions 63.6% Independent (7)
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM 36.4% Non Independent (4)
Held by the Ceo, including the Internal Audit and Risk Management
9
Our Top Management
Rossella Saoncella (1953) Chairman Claudio Albertini (1958) Chief Executive Officer
• Appointed as IGD’s Chairman on 20 April 2021 • Appointed in May 2009
• She was and executive of Conad Grouo until 1993 • IGD Board member since 2006
• She was General Manager of the Graranolo Group until 2011 • Member of EPRA (1) Advisory Board since 2017
• Over the past few years she has held administrative offices • Member of ECSP’s (2) Nominations Committee since 2021
for municipalities in Emilia Romagna and she has been a • More than 20 years of experience with Unipol Group, his last role
Directors at HERA S.p.A. being General Manager of Unipol Merchant
Daniele Cabuli (1958) Chief Operating Officer Roberto Zoia (1961) Director of Asset Management, development &
• More than 20 years of experience in retail distribution network management
• Joined IGD in 2008 as Network Management Director and has • Director of Asset Management and Development since 2006
been COO since 2009 • Chairman of CNCC (3) since 2020
• Worked for Coop Adriatica from 1986 with several roles: Head of • Joined GS Carrefour Italia Group in 1999 as Head of Hypermarket
Projects in the Marketing Division (1989), Head of different and Shopping centres Development
geographical areas and Hypermarket Manager (until 2003), • Head of Asset Management and Development for Carrefour Italia
Director of Marketing and Commercial Development (from 2003) from 2005
• Previously, Business Manager at Coopsette (from 1986)
Andrea Bonvicini (1963) Director of Finance Division
Carlo Barban (1978) Director of Administration, Legal & Corporate Affairs
• Head of IGD Group's Finance Division since September 2009
• In July 2012 he was appointed Director of Finance and • Director of Administration, Legal & Corporate Affairs since
Treasury Department January 2019
• More than 20 years of professional experience in the world of • CEO of Winmarkt group in the period Apr 2014 – Dec 2018.
credit, first in Cooperbanca and, after 1997, in the Bank of Worked in Winmarkt as Operating & Reporting Manager from
Bologna January 2009 with responsibilities also in administration,
planning and control and finance
• Previously worked as a qualified accountant and for international
Raffaele Nardi (1976) Director of Planning, Control and Investor
consultancy companies
Relations
• Graduated in Economics and Commerce
• Head of the division to which 3 different departments report:
planning, control and investor relations
• Joined IGD in October 2010
• Head of the Advisory Service of Unipol Merchant, bank of the
Unipol Group, where he matured more than ten years of
experience
• Graduated in Business Economics
1.
2.
EPRA: European Public Real Estate Association
ECSP: European Counsel of Shopping Places
10
3. CNCC: Consiglio Nazionale dei Centri Commerciali (National Council of Shopping Centers)Titolo
titolo
2 Operating performances
note
37Operating performances in Italy
in 2019 and 2020
2019 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
Positive National Positive quick answer New restrictions*
start of the Lockdown when the restrictions
year were eased
IMPACTS ON IGD’S SC: IMPACTS ON IGD’S SC:
66 days of restrictions 21 days of restrictions
(weekends, holidays)**
IGD’S shopping centers always open
but with «non-essential» stores closed for 87 days throughout 2020
MALL TENANTS
SALES
+0.5%
FOOTFALLS
-2.0%
ON AVERAGE YEAR 2020 vs 2019:
HYPERMKT
SALES Mall tenants sales -27.6%
-2.2%
Hypermarket sales -2.8%
Footfalls -29.5%
*Closure of cinemas, gyms, bars and restaurants + Regions variable coloring system based on changes in infection rates
** The 21 days of closure of non-essential activities on weekends and on holidays weight for approx. 40% of November and December tenant sales. 12Quick response to Covid and limited
effects on leasing activities in 2020
Precautions and measures implemented to ensure Maintained a controlled risk profile
the safety of the shopping centre visitors
ITALIAN MALLS
FINANCIAL
CONTRACTS: OCCUPANCY*
Renewals 55 turnover 46
TEMPERATURE MONITORING
(downside -0.38%)
94.3%
SANITIZING GEL DISPENSERS ROMANIAN MALLS
OBSERVE SOCIAL AVAILABLE TO VISITORS
CONTRACTS: FINANCIAL
DISTANCING
OCCUPANCY
Renewals 290
(downside -0.47%) 93.6%
AIR RECICLYING
FROM OUTSIDE Covid-19 net direct impacts on 2020:
MASK REQUIRED approx. €18.5mn** (approx. 1.7 months
STAGGERED ENTRIES granted)
SANITATION
OF COMMON
• No changes on existing contracts
AREAS
• Deferred payments and temporary
reductions granted
13Good results when the restrictions
were eased in 2020
Evidence emerged after restrictions were eased*…
Fewer but more targeted visits… Approx. 87% of footfalls recovered
…with an increase in average
ticket …
€ 26.0, +17% (+€3.8)
…resulting in a slight increase in
Tenant sales +0.3%
overall purchases
Quick answer from visitors; shopping centers still attractive
despite limitations on organized events and leisure activities
*figures refer to the period of August, September and October 2020 for Italian malls
14What’s happened in 1Q 2021:
Covid restrictions still impact
January February March
Normal activity Normal activitiy lockdown
Ø
2020
economic
«non-essential» activities in IGD’s shopping malls impact
were closed about 25% of the possible days of operation on 1Q 2020
vs
Restrictions and variable Restrictions and variable Restrictions and variable
closures closures closures €5.4 mln
2021
one off Covid
non-essential» activities in IGD’s shopping malls impact
were closed about 48% of the possible days of operation on 1Q 2021
(with differences based on the location)*
*For more information see slides 32 – 33 in the attachments
15The main trends
in the first 4 months of 2021
January February March
2021 2020
1Q 2021 vs 1Q 2021 vs
Δ month/month 1Q 2020 1Q 2019
TENANT
SALES
-38.1% -16.9% +142.2% -14.4% -38.1%
FOOTFALLS -38.1% -27.1% +50.0% -19.5% -36.5%
The 2020 trend with fewer but more targeted visits continued in the 1Q
average ticket 1Q ‘21 equal to €27.4 (+21.6% vs 1Q ‘20; +28.9% vs 1Q ‘19)
Update on April 2021 trends: footfalls -35.0% vs 2019
average ticket €29,9 +25,1% vs 2019
16Scenario change thanks to
the reopenings
week 17-23 May week 24-30 May week 31 May – 6 June
Progressive change
Change
vs 2020
+21.9%
Change
vs 2019
-11.5%
17Leasing management
performance in 1Q2021
74%
MALLS of rental KEY MESSAGES
income
• No changes on the
ITALY
structure of existing
contracts
CONTRACTS: FINANCIAL
OCCUPANCY* • Occupancy is decreasing in
Renewals 50 Turnover 22 Italy (-90 bps) because of
93.6% the «knock-on effect» of
the restrictions in force
since November
ROMANIA
• Occupancy in Romania is
FINANCIAL already recovering (+80
CONTRACTS
OCCUPANCY bps)
Renewals 75 Turnover 58
94.4%
26% • Always open**
of rental
HYPERMARKETS income • NO changes on existing contracts
and on rents
*malls + hypermarkets
**non-food departments closed during the weekend
18Collection rate*
FY2020 and 1Q2021
2020 1Q 2021
Collected>95% Collected~75%
▪ Monthly invoicing
Italian ▪ Negotiations with
Portfolio tenants are in progress
to manage the second
lockdown in the same
way as in 2020
(especially temporary
Collected >95% Collected >88% reductions)
Romanian
Portfolio
*% on invoiced rents net of reductions and loss on receivables; figures updated at 3 of May 2021
19IGD’s shopping centers
adapting to this context (1/2)
Introduction of new brands, which despite the restrictions, recorded good
results:
Furniture solutions, opened at International brand, 4 stores
Ready to Centro ESP: opened* with excellent results; new
introduce new it became a true attractive anchor of openings in IGD portfolio are
#1 players and the center expected
satisfy new
trends
Footfalls and sales, which were lost due to weekend closures,
Partial recovery were in part transferred and recovered during the week
#2 of lost tenants’
sales >48% days of closure of non-essential activities vs
- 38% of overall revenues excluding food anchors
*Clothing, accessories, household goods; opened at Centro Borgo, La Favorita, Le Maioliche and Fonti del Corallo
20IGD’s shopping centers
adapting to this context (2/2)
Openings of new brands and formats continued,
despite being one of the sectors hit hardest by the restrictions
La Piadineria – Centro Lame (BO) Poke Kal - Centrosarca (MI)
Food and
Open air food and beverage services allowed from 26th April
#3
2. Dal 26 aprile: consentita
beverage
ristorazione all’aperto
services Immediate response with specific areas and structures
did not halt organized outside with excellent results
Centro ESP (RA) Le Maioliche (RA)
Le Porte di Napoli (NA)
21Effective leasing activities to combat
the negative impacts of Covid
24* among new openings and fully Innovative brand: MI Store
restyled shops
Next opening
@Tiburtino
(Roma)
Continuous intense leasing activities
to re-let the higher number of vacant
spaces caused by the impacts of Covid
Some of the new openings in Italy and Romania
Encouraging and positive signals
from the market:
Folletto BimbY – Fonti del
• Romania: occupancy is increasing Corallo Medair (uffici) - Slatina
• Italy: expected recovery in the 2Q/2H
Venus (arredamento) -
Intimissimi - Maremà (GR) Ploiesti
*As of 30 April 2021
22IGD assets
to serve the community
The shopping center, which offers large, organized, supervised, regularly sanitized
and easy to reach spaces, is the ideal location to quickly and safely create areas
to endure proximity healthcare
in Palermo is the first IGD shopping center to host a vaccination center
(inaugureted on 26th of May) a strong signal of IGD proximity to the
territory.
1,800 m2 of surface, operational from mid May, it will be able to guarantee approx. 900 vaccinations per day
23Our idea of shopping center
in the coming years
«Next Steps» projects: ideas for innovation
▪ The pandemic favored the acceleration of some transformations on-going in the retail world and, therefore, in the
Shopping Centers sector
• Two surveys* to better understand new visitors needs
«Next steps»
Targets
#1 Finding solutions #2 Integration of CRM #3 Personalization/
to answer to new and digital plan specificity
needs of the actions and
offering
*Carried out between the end of 2020 and February 2021: the first one over a sample of 5,000 students aged 12/19; the second 24
one over 8,100 between visitors and not in 13 IGD’s shopping centersFirst initiatives that are already
being implemented
SERVICES MERCHANDISING
LAYOUT
AND TENANT MIX
▪ External areas intended for ▪ Apps to book/order at the ▪ Clinics in line with the plan to
restaurants and leisure restaurants endure proximity healthcare
▪ Areas intended for pick-up and ▪ pet store and vet clinics
delivery
▪ Click and collect
IGD aims at strengthening attractiveness and the
urban and service character of its shopping centers
253 Portfolio and projects
IGD: a portfolio of high
quality assets
Centro Sarca
North Sesto S.Giovanni
Esp Le Maioliche Centro Borgo Centro Lame Puntadiferro
(MI) Ravenna Faenza (RA) Bologna Bologna Forlì
IGD - Main Centro Leonardo Conè Centro Piave
San Donà di
Clodì Centro Nova
Villanova di
Mondovicino
Sc&Rp
Imola (BO) Conegliano (TV) Chioggia (VE)
Italian Asset Piave (VE) Castenaso (BO) Mondovì (CN)
Nuova Darsena Millennium La Favorita Gran Rondò Lungo Savio Centro Luna I Bricchi
Gallery
Ferrara Rovereto (TN) Mantova Crema (CR) Cesena La Spezia Isola d'Asti (AT)
Piazza Mazzini Tiburtino Maremà Centro Porto Cttà delle Stelle FontiFonti
del Corallo Casilino Centro
Maremà del
Center Livorno Guidonia (RM) Grosseto
Grande
Ascoli Piceno Livorno
Corallo
Caslino
Roma
d'Abruzzo
Centro d’Abruzzo
Grosseto Porto d'Ascoli Roma Pescara
Pescara
Livorno
>75% of the market value
Le Porte
La Torre Katané of Italian Malls and Future Offcine Storche
Officine Storiche
South di Napoli Livorno
Afragola (NA) Palermo Catania Hypermarkets dominant⁽1⁾ in Opening Livorno
respective catchment areas
27
1. Dominant assets: assets that are reference points for the consumers in their catchment area in terms
of attractivity and offer quality
Key assets malls with> € 7 0 m n mkt valueThe main characteristics of our portfolio
2,265.7 € mn
42% of this portfolio consists of 8 “Key” assets
of which 6 are Shopping centres (mall + hypermarket)
On average every shopping centre is 10 years old
Romania (last restyling/opening)
6% North western Italy
15%
Southern Italy
12%
Full ownership of 16 Shopping centres (mall+hyper) in Italy
(60.8% of Italy core market value)
Central Italy
25%
North eastern
Italy
42% 18 out of 25 Hyper/Super in Italy are small
(sales areaIGD’s portfolio market value
(1/2)
Gross Initial EPRA Net Initial EPRA Net Initial
FY 2019 * FY 2020 Δ%
Yield Yield Yield topped up
Malls Italy 1,574.54 1,473.30 (-6.43%) 6.53%
5.3% 5.4%
Hypermarkets Italy 564.58 558.97 (-0.99%) 6.02%
Romania 150.29 138.64 (-7.75%) 7.35% 6.0% 6.2%
Porta a Mare + development + other 91.99 94.78
Total IGD's portfolio 2,381.41 2,265.69 (-4.86%)
Leasehold properties (IFRS16) 54.80 43.32
Total IGD's portfolio including leashold 2,436.21 2,309.01 (-5.22%)
29
*Values at 31/12/2019 of Malls Italy and Hypermarkets Italy have been reclassified because of the Casilino realized in 2H 2020.IGD’s portfolio market value
(2/2)
ITALY ROMANIA
€ 2,381.4mn 7.5
7.5
Other 3.9%
(91.99 €mn)
Romania 6.3% -115.3
(150.29 €mn) -115.3 € 2,265.7mn
10.3 -6.5 0.5 -12.2
10.3
Other 4.2%
-6.5 0.5 -12.2 (94.78 €mn)
Romania 6.1%
(138.64 €mn)
FV change is due to DCF
2,381.4 assumptions (rates) for
Malls 66.1%
2,381.4
(1,574.54 €mn) approx. 29% and to change in
cash flows including COVID
2,265.7
Malls 65.0%
impacts for approx. 71* (1,473.30 €mn)
2,265.7
Asset
Hypervalue at
23.7% Projects and capex Change in market Projects and capex Change in market Projects and capex Change in market AssetHyper
value at
31/12/2019
(564.58 €mn) Italy value Italy Porta Medicea value Porta Medicea Romania value Romania 31/12/2020
24.7%
(558.97 €mn)
Asset value at Projects and capex Change in market Projects and capex Change in market Projects and capex Change in market AssetFY2020
value at
FY2019
31/12/2019 Italy value Italy Porta Medicea value Porta Medicea Romania value Romania 31/12/2020
*Estimate calculated excluding Casilino Shopping Center that was remodeled
30EPRA Metrics
€ per share FY 2020 FY 2019 Δ%
NRV and NAV 10.38 11.40 -8.9%
NTA 10.31 11.29 -8.7%
NDV 10.42 10.81 -3.6%
-0.23 0.54
-1.32
0.00
11.40
10.38
EPRA NRV/NAV 31 Resolved dividend FFO Change in asset fair Change in financial EPRA NRV/NAV 31
Dec 2019 value instruments fair Dec 2020
value and other
31Strong repositioning
of the Romanian Portfolio
1 5 9 13
2 6 10 14
1 7
2 Bistrita Piatra Neamt 8
Cluj-Napoca Vaslui
7 11
3 9
3
Turda Galati
14 Key Strategical points
4 10 1
13 12
Ramnicu Valcea 1
Buzau Braila Tulcea • Further capex
Ploiesti for safety, maintenance
5
4 8 12
and commercial
Slatina Bucuresti - Hq improvements
6 • Growth trend of rents
Alexandria
• Attention on operational
costs
• Focus on sustainability
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019-2021
Acquisition
Surfaces recovery/Tenant Repositioning and complete external/internal refurbishement
Consolidation
New Plan
c.€22mn of investments (2008- c.€70.+5mn of dividends generated since
Self-financing of the 2020) for the upgrade and
No financial leverage
investments carried the acquisition⁽1⁾
repositioning of the portfolio
out
Romanian portfolio considerably repositioned, currently generating important free-cash flow
1. Until December 2020 32Flexible and sustainable
asset management
2020 2021/2022
✓ In order to strenghten the Group’s financial ✓ Priorities: non defferable activities,
solidity some projects and capex were extraordinary maintenance, update of
postponed as early March 2020. systems as well as fit out adaptations in order to
continuosly attract tenants and visitors.
✓ Lower cash-out for approx. €40mn ✓ Our asset type enables us to be flexible in
compared to what expected for the year offering spaces for different uses like flagships
for physical and/or online sales, logistics
hubs…
2020 Total Investments €18.3mn No major transformations/reconversions
are necessary, just few adjustmens in the
merchandising mix
33Pipeline
CENTRO CASILINO PORTO GRANDE LA FAVORITA
Project
Mall Restyling and Mall Restyling and
Hypermarket Hypermarket Mall Restyling
Remodelling Remodelling
Restyling of the external Reduction in the
façade and internal areas hypermarket area and Restyling of the
together with seismic creation of new retail façade, the internal
Description improvement measures areas and the car park
units in the mall; center
on the Ground Floor and restyling (project by
First Floor Lombardini 22)
End of work 1H 2022 End of 2022 End of 2022
34Porta a Mare: an ambitious
multifunctional project Lips Molo Mediceo Arsenale
Livorno, touristic Port
(Hotel, residential, entertainment and
Officine Storiche
services for the port)
(retail, food court, residential)
Focus next slide
Piazza Mazzini
Palazzo Orlando
(retail, residential)
Retail owned by IGD and
already operational since 2016; (Offices)
residential fully sold Sold on 30/09/2019
35Porta a Mare:
Officine Storiche
The heart of the project
End of work:1H2022
Total expected investment retail area : € 53 mn
(of which remaining € 11mn*)
Total surfaces: 20k sqm, of which 15k sqm
dedicated to retail
Stores: 30 + 10 restaurants + 1 fitness center
*Data at 31/03/2021
36Residential areas
Piazza Mazzini Officine storiche
73 flats already sold 42 seafront flats
(flats with garden, flats with terrace, (11 preliminary purchase agreements signed + 3
duplex terraced houses) being finalized at 25/05/2021 )
374 Sustainability
Sustainability: committment continues
despite the pandemic
Most short-term goals achieved, work in progress on the medium/long-term targets.
GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER
• €1.2mn invested in • Stable level of • UNIISO37001 «Anti • Digital Plan defined and • Dialogue with the
energy efficiency employment and bribery management existing shopping centers stakeholders
measures Corporate Welfare Plan system» certification web instruments strengthened for a more
• 19 EV charging confirmed obtained in Italy (websites and social unitary emergency
stations installed • Training activity for all the • Second renewal of three networks) updated to management: for ex.
• ISO14001 employees and a new stars Legality Rating increase contacts with Post lockdown surveys
certification for 4 activity of «Virtual Team» obtained (maximum score visitors had been carried out to
more shopping tested awarded) • Communication Campaign better understand the
centers and Breeam • Implemented measures • Code of Conduct and realized to reassure visitors’ needs
in Use certification for the safety of Organizational visitors about the safety
for 3 more shopping employees and visitors Management and Control and the offering of the
centers both in the headquarters Model updated shopping centers post
and in the shopping • Adhesion to United lockdown
centers Nations Global Compact
39Some of the results achieved
Level of satisfaction of
IGD shopping centers’ visitors
3.9
(scale 1min. - 5max.)
Co2 Emissions intensity 2020-2012
(KgCo2/Mq)
-36.1% The structured engagement of all
stakeholders allows IGD to
understand their expectations and
evaluate if integrate them in its
strategy
2020 Turnover rate
ISS QuickScore evaluation on
2.3% governance risk (1 lowest risk-10 highest risk)
1 (2021)
40IGD sustainability in the national and
international context
PARTICIPATION IN NATIONAL AND INTERNATIONAL ORGANISATIONS AND EVENTS ON SUSTAINBILITY
Universities lectures
and testimonies
Member of the EPRA Member of the Chairman of the ESG Member of Impronta IGD is called to spoke
Sustanability committee Sustainability Group Commission Etica since 2010. about its CSR path at
since 2018. Impronta Etica (non- university classes and
profit organisation Masters
that aims to promote
and develop the CSR)
INTERNATIONAL AWARDS AND BENCHMARK
Stock Indices Sustainability rating (ESG) Awards (2021)
6 independent and unsolicited ratings in 2020 • Sustainability Leader
(4 in 2019) 2021 (Sole 24 Ore)*
• 3° at the Confindustria
contest «Best Performer
for circular economy»
5 stock indices with with the Waste2Value
focus on sustainability project
Growing (or in line) scores
*analysed the Corporate Social Responsabilty (CSR) of more than 400 companies in Italy. To that end, more than 30 KPIs regarding environment,
social and economic have been examined. 150 companies have been awarded. 415 FY2020 and 1Q2021
Financial ResultsFY 2020 and 1Q2021
main results
2020 vs 2019 1Q 2021 vs 1Q 2020
REVENUES
Rental Income €145.6 mn -6.2% €36.7 mn -4,4%
Net Rental Income €109.5mn -19.8% €26.2 -20.7%
EBITDA
EBITDA (Core Business ) €99.4 mn -20.6% €23,8mn -21.6%
EBITDA Margin (Core Business) 65.4% -121pts 61.8% -140pts
EBITDA Margin From Freehold 65.3% 62.0%
GROUP NET PROFIT €-74.3 mn n.a. €10.3 mn -31.1%
Core Business Funds From Operations (FFO) €59.3 mn -28.8% €13.8 mn -33.3%
Core Business FFO per share * 0.54 0.13
Results impacted by the exceptional containment measures adopted in Italy to limit the spread of
Covid-19
1. Calculated on the year-end no. of share 443
3Net Rental Income
(€mn)
Italy
-€8.6mn -19.9% -€27.1mn
-6.3% Romania -19.8%
-19.3%
-5.3 -3.3
-18.5 *
136.6
FY2020 128.0
109.5
Net rental income 2019 Change in rental income Change in rental costs Net rental income 2020 adj COVID net direct impacts Net rental income 2020
Italy
-1.4€mn -20.9%
-6.8€mn
-4.2% Romania
-20.7%
-17.5%
**
1Q2021
*Covid-19 net direct impacts include Covid temporary reductions already granted for €4.4mn and Covid effects included in direct costs for €14.1mn.
44
**Covid-19 net direct impacts include Covid temporary reductions already granted for €0.2mn and Covid effects included in direct costs for €5.2mn.
Some figures may not add up due to rounding.Financial management
(€mn) 5.4 3.8
5.4 3.8 2.8
3.8 2.8
2.8 Total Total
€ 36.8mn € 36.2mn
-4.7%
Negative carry
31.0 5.4 29.6 3.8
€400mn bond issue + SACE
31.0 29.6 2.8
29.6 IFRS16 and
Totale Totale
9,0€mn
non-recurring charges
8,8€mn
FY2020 Totale
8,8€mn
31.0 29.6
0.7FY 2019 FY0.6
2020 Finacial Mgt. Adj:
FY 2019 0.6FY 2020 -€1.4mn vs 2019 (-4.7%)
FY 2020
Financial management Adj. IFRS16 and non-recurring charges Negative Carry
management Adj. IFRS16 and non-recurring charges Negative Carry
FY 2019 FY 2020
ecurring charges Negative Carry
Total
Totale
Financial management Adj. IFRS16 and non-recurring charges Total
Totale Negative Carry
8.4 € 9.0mn
9,0€mn
8.2 -1.5% € 8.8mn
8,8€mn
8.2 0.7 IFRS16 and
0.6
non-recurring charges
1Q2021 8.4 8.2
Recurring Financial Mgt:
1Q 2020 1Q 2021 -0.2€ mn vs 2020 (-1.5%)
1Q 2021
Recurring financial management IFRS16 and non-recurring charges
cial management IFRS16 and non-recurring charges
1Q 2020 1Q 2021
Some figures may not add up due to rounding
Recurring financial management IFRS16 and non-recurring charges 45Funds From Operations
(FFO)
-€5.5mn -€24.0mn
-6.6% -28.8%
-7.3 0.2 FFO p.s.
1.4
-18.5 0.54€
83.3
77.8
FY2020 59.3
FFO_2019 Change in core Change in financial Change in taxes and FFO_2020 adj COVID net direct FFO_2020
business Ebitda adj*
1 management adj other impacts
-1.5€mn -6.9€mn
-7.1% -33.3%
FFO p.s.
0.13€
1Q2021
Some figures may not add up due to rounding.
1 Change in core business Ebitda Ad (fy20)j: equal to change in core business Ebitda adjusted by approx. €0.7mn of non recurring expenses.
*Change in core business Ebitda
PerAdj
recurring marketing expensens
(1Q21):dell’FFO
il calcolo equal to change core business
sono state Ebitdaleadjusted
considerate by passive
locazioni approx. 0.9mn estimated
e rettificato lowerdella
il dato leasing rents and
gestione +0.2 €mn of 2020 non-
finanziaria 46
**Financial management adj (1Q21): net of IFRS16, IFRS9, non-recurring charges net of negative carryFinancial structure as at 1Q2021
31/12/2020 31/03/2021
LTV 49.9% 49.5% • Net debt improved in the
(adj. IFRS16 c. 47.8%) (adj. IFRS16 c. 47.6%) first quarter
(-10€mn vs YE2020)
ICR 3.2X 2.9X
• LTV is slightly decreasing
Average cost of 2.30% 2.32%
debt
NET DEBT
Debt breakdown* €1,145.4 mn**
MARKET SECURED
54.6% 26.0%
BANKING
SYSTEM L.T.
45.4% 1,192.24
UNSECURED
74.0%
CASH
-46.86
*Debt calculated excluding the IFRS16 effect
**Net debt including IFRS16 effect (if excluded €1,101.8mn) 47Debt maturity as at 1Q2021
€100mn: 2.25% 7y
€400mn: 2.125% 5y
Ratings
2.1%
5y*
Repayed on
2.65%
7y
209
500 BBB- negative outlook
1 March
154
71 9
2 9
67 7
52 53 46
25 27 6
2021 2022 2023 2024 2025 2026 >2026
BB+ negative outlook
secured bank debt unsecured bank debt Bonds Already repayed
Taking into account the cash-on-hands at 31/03/2021
equal to €46mn and the committed and uncomitted credit
lines, the Group has already enough resources to cover the
financial maturities of 2021 and first months of 2022
*rate and duration refers to €200mn loan
48On-going process on disposals to
rebalance the financial structure
✓ Consistent with 2019-2021 Strategic Plan, the procedure for the disposal of
a portfolio of stand-alone hypermarkets/supermarkets was started
✓ Mandate granted to CBRE, a premiere international advisor
Asset class with a Attractive Stable cash-flow
good appeal on Net Initial yield with long-term
the market leases
The proceeds from the transaction will be used to reduce the
Loan-To-Value and strenghten the financial structure
496 Dividend and Outlook
Dividend
2020 Next few years
✓ Loss of the Parent company IGD SIIQ SPA ✓ As soos as external conditions allow, IGD
✓ Safeguard of the financial stability and the intends to resume paying dividends and
investment grade profile providing its shareholders with attractive
remuneration
NO DIVIDEND IGD share remains
DISTRIBUTION a «dividend play»
Decision triggered by
exceptional circumstances
51Outlook
The first few months of 2021 were undoubtely difficult for shopping center operations
due to the restrictions put in place, and it is therefore plausible that the Company will again be
impacted directly and indirectly by the pandemic
NEW OUTLOOK
Basic assumptions
• Effective implementation of the FFO
FY2021
vaccination plan
• Strengthening of the economic
recovery starting from 2° half 2021 +3/4%
vs FY2020
(without further significant
Not taking into account the
restrictions) disposal impact
52Titolo
titolo
7 Appendix
note
65Consolidated Income
Statement 1Q2021
GROUP CONSOLIDATED (a) (c) Δ
1Q_CONS_2020 1Q_CONS_2021 (c)/(a)
Revenues from freehold rental activities 35.3 33.6 -5.0%
Revenues from leasehold rental activities 3.1 3.1 1.9%
Total income from rental activities 38.4 36.7 -4.4%
Rents and payable leases 0.0 0.0 -9.8%
Direct costs from rental activities -5.4 -10.5 95.6%
Net rental income 33.0 26.2 -20.7%
Revenues from services 1.6 1.7 7.3%
Direct costs from services -1.4 -1.4 -2.4%
Net services income 0.2 0.4 67.4%
HQ Personnel expenses -1.7 -1.7 3.7%
G&A Expenses -1.2 -1.1 -14.7%
CORE BUSINESS EBITDA (Operating income) 30.3 23.8 -21.6%
Core business Ebitda Margin 75.8% 61.8%
Revenues from trading 0.0 0.0 n.a.
Cost of sale and other costs from trading -0.1 -0.2 22.9%
Operating result from trading -0.1 -0.1 -0.4%
EBITDA 30.2 23.6 -21.7%
Ebitda Margin 75.5% 61.4%
Impairment and Fair Value adjustments -5.9 -4.1 -29.4%
Depreciation and provisions -0.3 -0.3 3.4%
EBIT 24.1 19.2 -20.1%
0.0
FINANCIAL MANAGEMENT -9.0 -8.8 -2.4%
ENTRAORDINARY MANAGEMENT 0.0 0.0 n.a.
PRE-TAX RESULT 15.1 10.4 -30.8%
Taxes -0.1 -0.1 18.4%
NET RESULT OF THE PERIOD 14.9 10.3 -31.1%
(Profit/Loss) for the period related to third parties 0.0 0.0 n.a.
GROUP NET RESULT 14.9 10.3 -31.1%
Some figures may not add up due to rounding
54Reclassified Balance
Sheet 1Q2021
Sources - Uses of funds (€/000) 31/03/2021 31/12/2020 Δ Δ%
Fixed assets 2,231,246 2,234,484 3,238 0.1%
Assets under construction 44,182 42,674 -1,508 -3.4%
Other non-current assets 17,956 17,374 -582 -3.2%
Other non-current liabilities -30,646 -30,371 275 -0.9%
NWC 32,434 30,421 -2,013 -6.2%
Net deferred tax (assets)/liabilities -10,645 -10,286 359 -3.4%
TOTAL USE OF FUNDS 2,284,526 2,284,296 -230 0.0%
Net equity 1,126,320 1,114,442 -11,878 -1.1%
Net (assets)/liabilities for derivative instruments 12,827 14,396 1,569 12.2%
Net debt 1,145,379 1,155,458 10,079 0.9%
TOTAL SOURCES 2,284,526 2,284,296 -230 0.0%
GEARING RATIO (€000)
1.03 1.01
1,125,417 1,135,656
1,155,458 1,145,379
2020 2021
Net debt Adj. Net equity
55Funds From Operations
(FFO) 1Q2021
Funds from Operations CONS_2020 CONS_2021 Δ 2020 Δ%
*
Core business Ebitda 30.3 23.8 -6.6 -21.6%
IFRS16 Adjustments (Payables leases) -2.6 -1.7 0.8 0.3%
Financial management adj -6.8 -7.9 -1.0 15.2%
Extraordinary management adj 0.0 0.0 0.0 n.a.
Gross margin from trading 0.0 0.0 0.0 n.a.
Current taxes for the period -0.3 -0.3 0.0 -1.6%
FFO 20.6 13.8 -6.8 -32.8%
Una tantum Marketing 0.2 0.0 -0.2 n.a.
FFO 20.8 13.8 -6.9 -33.3%
* Considera nelle locazioni passive la riduzione di una mensilità (in linea con le stime interne di riduzione delle locazioni derivanti 56
dagli impatti COVID)More financial highlights 1Q2021
31/12/2020 31/03/2021
Gearing ratio
1.03X 1.01X
Average lenght of long-term debt 3.2 years 3.2 years
Hedging on long-term debt + bond 93.0% 92.7%
Share of M/L term 98.3% 98.6%
Uncommitted credit lines
granted 151€ mn* 151€ mn*
Uncommitted credit lines
available 151€ mn 151€ mn
Committed credit lines granted
60 € mn 60 € mn
and available
Unencumbered assets 1,434.9€ mn 1,434.9€ mn
* Some banks allowed us to transform them in medium/long-term not granted credit lines.
57Other Epra metrics FY2020
EPRA Performance Measure 31/12/2020 31/12/2019
EPRA NRV/NAV (€'000) 1,145,827 1,258,008
EPRA NRV/NAV per share € 10.38 € 11.40
EPRA NTA 1,137,258 1,245,473
EPRA NTA per share € 10.31 € 11.29
EPRA NDV 1,149,534 1,192,894
EPRA NDV per share € 10.42 € 10.81
EPRA Net Initial Yield (NIY) 5.8% 5.9%
EPRA 'topped-up' NIY 5.9% 6.0%
EPRA Vacancy Rate Malls Italy 7.6% 4.5%
EPRA Vacancy Rate Hypermarkets Italy 0.0% 0.0%
EPRA Vacancy Rate Total Italy 5.7% 3.2%
EPRA Vacancy Rate Romania 6.5% 2.4%
EPRA Performance Measure 31/12/2020 31/12/2019
EPRA Cost Ratios (including direct vacancy costs) 17.9% 18.5%
EPRA Cost Ratios (excluding direct vacancy costs) 15.3% 16.1%
EPRA Earnings (€'000) € 62,941 € 87,335
EPRA Earnings per share € 0.57 € 0.79
58Italian Portfolio:
hypermarkets and shopping malls
27 shopping malls 25 hypermarkets Tenants of hypermarkets
Centro D'Abruzzo - Pescara Centro D'Abruzzo - Pescara Coop Alleanza 3.0
Clodì - Chioggia Clodì - Chioggia Coop Alleanza 3.0
Porto Grande - Porto d'Ascoli (AP) Porto Grande - Porto d'Ascoli (AP) Coop Alleanza 3.0
ESP - Ravenna ESP - Ravenna Coop Alleanza 3.0
Centro Borgo - Bologna Centro Borgo - Bologna Coop Alleanza 3.0
Conè Retail Park - Conegliano (TV) Conè Retail Park - Conegliano (TV) Coop Alleanza 3.0
Le Maoliche - Faenza Le Maoliche - Faenza Coop Alleanza 3.0
Full ownership
Lungo Savio - Cesena Lungo Savio - Cesena Coop Alleanza 3.0
16 shopping centres Città delle Stelle - Ascoli Piceno Città delle Stelle - Ascoli Piceno Coop Alleanza 3.0
(mall + hypermarket) Katanè - Catania Katanè - Catania Coop Alleanza 3.0
Centro Lame - Bologna Centro Lame - Bologna Coop Alleanza 3.0
Centro Leonardo - Imola (BO) Centro Leonardo - Imola (BO) Coop Alleanza 3.0
La Torre - Palermo La Torre - Palermo Coop Alleanza 3.0
Casilino - Roma Casilino - Roma Uncoop Tirreno
Le Porte d Napoli - Afragola(NA) Le Porte d Napoli - Afragola(NA) Distribuzione Centro Sud Srl (ipercoop)
Tiburtino - Guidonia (RM) Tiburtino - Guidonia (RM) Distribuzione Centro Sud Srl (ipercoop)
Millennium Gallery - Rovereto (TN)
Puntadiferro - Forlì (FC)
Centroluna - Sarzana (SP)
La Favorita - Mantova
Maremà - Grosseto
11 shopping malls Centro Sarca - Sesto S. Giovanni (MI) Hypermkts not owned by IGD
Mondovicino Retail Park - Mondovì (CN)
Gran Rondò (Crema)
Piazza Mazzini (Livorno)
I Bricchi - Isola d'Asti (AT)
Darsena City - Ferrara
Supermkt Civita Castellana (Viterbo) Unicoop Tirreno
Supermkt Cecina (Livorno) Unicoop Tirreno
Hypermkt Le Fonti del Corallo - Livorno Unicoop Tirreno
Hypermkt Schio-Schio (Vicenza) Hypermkt Coop Alleanza 3.0
9 hypermarkes Malls not owned by IGD LUGO - Lugo (RA) Coop Alleanza 3.0
Hypermkt IL MAESTRALE - Senigallia (AN) Coop Alleanza 3.0
Hypermkt MIRALFIORE - Pesaro Coop Alleanza 3.0
Supermkt AQUILEJA - Ravenna Arca SpA (Famila)
Hypermkt I MALATESTA - Rimini Coop Alleanza 3.0
59Contracts and key tenants
Italy 1Q2021
Malls
Product Rents
TOP 10 Tenant Contracts
category impacts N 171 N 187 N 204 N 840
clothing 3.1% 14 64.8%
10.6% 10.4% 14.2%
clothing 2.6% 9
2021 2022 2023 >2023
electronics 2.1% 8
Average residual maturity: 3.9 years
personal care 1.8% 17 Total contracts: 1,402 of which 57 renewals with the same tenant
and 27 signed with a new tenant
clothing 1.7% 23
Rotation Rate 1.9% (% new tenats on tot. contracts)
clothing 1.7% 28
Hypermarkets
clothing 1.6% 10 N1 N 24
jewellery 1.5% 26 94.2%
shoes 1.4% 5
5.8%
jewellery 1.3% 19
2021 2022 2023 >2023
Average residual maturity: 13.5 years
Total 18.8% 159
Total contracts: 25
60Contracts and key tenants
Romania 1Q2021
Product Rents
TOP 10 Tenant Contracts
category impacts Winmarkt
supermarkets 11.3% 11
N 216 N 197 N 49 N 78
clothing 5.7% 10
36.0%
clothing 4.6% 11
28.0%
25.0%
clothing 3.6% 6
drugstore 2.8% 5 11.0%
jewellery 2.3% 4
personal care 2.1% 5
2021 2022 2023 >2023
office 1.9% 1 Average residual maturity: 4.0 years
restaurants 1.3% 1 Total contracts: 540 of which 75 renewals with the same tenant
and 58 signed with a new tenant
entertainment 1.2% 1
Rotation Rate 10.7% (% new tenants on tot contracts)
Total 36.8% 55
61Merchandising &
Tenants Mix 1Q2021
Italy Romania
Household Culture, leisure and Household goods
Restaurants Supermarkets
goods gift items 5%
7% 11%
Culture, leisure 9% 3%
and gift items Electronics Personal care
12%
Electronics
7% 4% 2%
Personal care Services
5% 9%
Services
Merchandising Restaurants
7%
Mix* 7%
Entertainment Other
4%
Clothing
5% 42%
Clothing
Entertainment
51%
13%
Local brands International
13% brands
Local brands 37%
International 43%
brands
40% Tenant
Mix*
National
National brands
brands
20%
47%
*Internal processing on total rents
62The main shareholders:
«Coop world»
7 Legal entities throughout Italy
«Coop world» key data(1):
17 Regions covered by Coop Turnover ~ EUR 14.7 bil € (12.9 % of italian large scale retail) 2
No. of stores: ~1,200
Employees ~52,000
Members ~ 6.7 Mn people
Coop Alleanza 3.0 (3) Unicoop Tirreno (4)
Revenues ~4.4bn € ~890mn €
N° of stores ~378 ~100
Employees s ~21,900 3,410
Members ~2.3 mn ~607,000
Deposits from
members
~3.2bn € ~602mn €
Strategic investments in listed companies:
UNIPOL GRUPPO
FINANZIARIO IGD SIIQ SPA
(Insurance and banking)
1. Data at 31/12/2018
2. Source: Nielsen, survey GNLC 2020 63
3. Data at 31/12/2020; sources:: Coop Alleanza 3.0
4. Data at 31/12/2019; sources; Unicoop Tirreno financial reportsRaffaele Nardi Director of Planning, Control and investor relations raffaele.nardi@gruppoigd.it Claudia Contarini, Investor Relator T. +39 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli, IR Team T. +39. 051 509242 elisa.zanicheli@gruppoigd.it Federica Pivetti, IR Team T. +39. 051 509260 federica.pivetti@gruppoigd.it Follow us on
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